The latest report titled “Bare Lands Market Report” by Research Intelligence Unit shows the highest land prices are currently found in the Kotte, Sri Jayewardenapura area in the Colombo district.

The report provides an overview of the real estate boom and an extensive profile of the Bare Lands market, land price escalation as well as the main players in the market.

The report highlights that there will be significant differences between areas that benefit from new road and rail infrastructure initiatives from those areas that do not.

Hence, the impact on different geographical locations in the Western Province will need to be assessed on a case-by-case basis, the report added.

The report also states that “the overall prospects for the suburban land market beyond prime Colombo looks very promising,” while further noting that “Colombo has rapidly emerged as a high-end market that is out of reach for the vast majority of the population which leaves many millions with only one option – the suburbs.”

By some accounts, the average annual price escalation of bare lands in the Western Province is between 7-8 percent.

However, according to RIU’s own sources, a double-digit growth in land plots was seen across many parts of the province, particularly areas that have benefited from ongoing infrastructure development.

Land prices in parts of Kotte, for example, have been escalating at well over 15 percent per annum according to real estate agents operating in this area.